UPS has announced a $48 million investment to expand its global healthcare logistics infrastructure with 27 temperature-controlled freight cross-dock facilities across key markets in the United States, Europe, Asia, and the Americas.
Designed to support fast, short-term storage between air and ground transport, the facilities are optimised to maintain strict pharmaceutical temperature requirements, including 2°C to 8°C, 15°C to 25°C, and frozen conditions.
The expansion strengthens UPS’s global cold-chain logistics network at a time when demand for temperature-sensitive medicines continues to accelerate, particularly biologics requiring precise handling and distribution.
Industry forecasts from Growth Market Reports project that demand for temperature-sensitive biologics will grow at an 8.3% CAGR through 2033, reaching an estimated $39.1 billion. This growth is driving increased need for advanced cold-chain logistics capable of maintaining product integrity from manufacturing to patient delivery.
Kate Gutmann, EVP and President of International, Healthcare and Supply Chain Solutions at UPS, said the investment is aligned with evolving healthcare logistics requirements:
“We have aligned our investments with our healthcare customers’ specialised needs. Our global cross-dock facilities strengthen our end-to-end cold-chain capabilities to ensure critical treatments are delivered safely and reliably to patients around the world. This reflects our commitment to more than moving packages—we are helping patients access essential medicines and treatments.”
Integrated Cold-Chain Network Enhances Control and Reduces Risk
The 27 temperature-controlled cross-dock facilities are fully compliant with IATA CEIV Pharma standards, ensuring globally recognised quality and handling protocols for pharmaceutical shipments.
By operating as a single integrated network, UPS reduces the need for multiple handoffs between providers, lowering risk and improving supply chain control. Enhanced real-time visibility and centralised oversight help protect high-value, temperature-sensitive therapies from delays and temperature excursions.
A 24/7 global control tower monitors shipments continuously, enabling rapid intervention when disruptions occur.
Rising Demand for Biologics and Advanced Therapies Drives Cold-Chain Growth
The expansion comes as demand for biologics and advanced therapies continues to rise. According to PharmaSource, approximately one in three newly approved drugs is now a biologic, with more than 85% requiring temperature-controlled logistics.
Emerging therapies such as cell and gene treatments, mRNA-based medicines, and GLP-1 injectables are increasing complexity across global pharmaceutical supply chains.
Temperature excursions remain a major risk factor, with cold-chain failures estimated to cost up to $35 billion annually and contributing to as much as 50% of global vaccine waste, according to the World Health Organization (WHO).
John Bolla, President of UPS Healthcare, said:
“Biologics and personalised treatments are driving better, more targeted care for patients. These investments reflect our commitment to aligning our end-to-end supply chain to protect innovative treatments and diagnostics and support improved patient outcomes.”
UPS Expands Healthcare Logistics Through Strategic Investments and Acquisitions
UPS’s cross-dock expansion builds on long-term investment in healthcare logistics infrastructure, including acquisitions such as Bomi Group, Frigo Trans, and BPL in Europe, as well as Andlauer Healthcare Group in North America.
The company has also expanded its Incheon air hub in South Korea to support growing pharmaceutical trade flows. South Korea imported approximately $9.7 billion in pharmaceutical products in 2025, according to the Observatory of Economic Complexity.